VALUATION ANALYSIS ACQUISITION PROCESS PT Z BY PT BANK Y

• Main Author: Suryadani (NIM : 29106001) , Detya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/11987
• Institution: Institut Teknologi Bandung

The economics in all over the country based on financial institution condition especially banking. Banking industry is regulated industry by authorized regulator from Federal Reserve Bank to entrance the industry relatively closely, but not decrease the innovated from banking industry to compete in the business. Banking business concept fore ward is universal banking in all most nationally and globally banks, especially big bank merge with others company in financial industry.<p>Universal banking is banking operational with innovated to integrate all financial product to one product as banking product. The changes of operational pattern from conventional path to more complex means that bank as entity might to involve in all most financial business activities such insurance, stock market, mutual fund and derivatives.<p>This banking business phenomenon, the bank tend to create group of business in financial, where the bank can be a holding company with subsidiaries company in financial services. PT Bank Y have a vision to be 10 largest bank in Indonesia, want to expand the business with organic and inorganic growth by owned subsidiaries in financial services, to create harmonious synergize between banking business and potential financial services. One of the targeted company is PT Z a general insurance.<p>This thesis focused on valuation from each company and synergy valuation. The method used in this paper are relative valuation analysis and discounted cash flow analysis. From the relative valuation analysis we can calculate that the share market price are 8,23 X for PT BANK Y and 3,58 X for PT Z, from the discounted cash flow analysis the value of the company increase 1,46 X for PT BANK Y and 1,63 X for PT Z. The value of synergy from both company amounted 1,990,300.43 this amount is higher than amounted from each company added to 1,972,578.74